Purport of the provision on deemed donation under Article 32-2 (1) of the Inheritance Tax Act

The provision on the constructive gift under Article 32-2(1) of the Inheritance Tax Act is the purport that, insofar as there is an agreement between the actual owner and the nominal owner or if there is a communication between the actual owner and the nominal owner and such registration has been made, the actual donation between them shall be deemed to have been made by the actual owner when the registration, etc. is made between the real owner and the nominal owner and the nominal owner.

Article 32-2(1) of the Inheritance Tax Act

Supreme Court Decision 86Nu290 decided Oct. 14, 1986; 85Nu1001 decided Mar. 10, 1987; 86Nu486 decided Apr. 28, 1987

[Judgment of the court below]

Head of Hongsung Tax Office

Seoul High Court Decision 87Gu306 delivered on October 16, 1987

The appeal is dismissed.

The costs of appeal are assessed against the plaintiff.

As to the ground of appeal by the Plaintiff’s attorney:

According to the reasoning of the judgment below, the court below recognized the fact that the non-party who was the owner of each land in its judgment was deceased on December 24, 1983 and jointly inherited by the plaintiff who was his wife and children, and reported the death as if he died on January 20, 1984, and determined that the disposition imposed by the defendant against the plaintiff as to the title trust of the above land, which is inherited property, was lawful, on the ground that the above clan was decided to title trust the inherited property to the plaintiff on December 31, 1983 or January 16, 1984, after the non-party died, on the ground that it was traded between December 17, 1983 and January 14, 1984.

In the process of the above recognition by the court below, it is not possible to find out the permit of a violation of the rules of evidence, such as the theory of lawsuit.

The purpose of Article 32-2(1) of the Inheritance Tax Act is that insofar as there is an agreement between the actual owner and the nominal owner on the constructive gift of Article 32-2(1) of the same Act, or as long as such registration has been made by means of communication, there is no substantial donation among them, or the actual owner is deemed to have made a donation to the nominal owner when the registration, etc. is made between the cases not merely a title trust, and thus, the original judgment that lawful the Defendant’s disposition, which was imposed on the gift tax by deeming the transfer of ownership in the name of the Plaintiff, is justifiable

In addition, the argument that there is a misapprehension of the legal principles as to the division consultation of inherited property is nothing more than criticism of the judgment of the court below on the premise of facts different from the facts recognized by the court below.

Therefore, the appeal is dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices.

Justices Lee Jae-sung (Presiding Justice)